The Ghana Cement Manufacturing Association (GCMA) has commended Ghana Link and Customs for taking a decisive step to review cost and freight value of imported bagged cement into the country.
The valuation of Freight on Board (FOB) for importation of bagged cement into the country has recently been adjusted from US$25 per metric tonne to US$60 per tonne.
Speaking in an interview with the media on this recent development, Chairman of the GCMA Dr. George Dawson-Ahmoah, who is also the Strategy and Corporate Affairs Director of Ghacem, on behalf of the Association commended government for the adjustment and accordingly urged its sustenance in order to maximise revenue as well as protect the local cement industry
He said the Association is not expecting any value less than US$80 per tonne to cover cost and freight of imported cement from China to Ghana, lamenting that imported bagged cement coming into the country with under-declared value results in cheaper retail prices and loss of revenue for the country.
Dr. Dawson-Ahmoah said the country does not need the influx of bagged cement, expressing optimism that the local cement industry has adequate capacity to meet demand, since various expansions projects have been completed to guarantee the needed capacity in the country
He said currently there is a surplus local cement production capacity of over 2 million tonnes.
“We are appealing to international cement manufacturing companies who know the international cement market trade to abide by fair trade practices to safeguard the industry, because it has consequences like workers losing their jobs, lower taxes to the government and folding-up of local cement companies — which would be disastrous for the nation.”
Dr. Dawson-Ahmoah observed that since the GCMA petitioned government through the Ministry of Trade and Industry on the under-declared value of the FOB, the Association has been monitoring movement of imported bagged cement and will continue to insist on fair trade practices
“The retail prices of competitors are below ours, and looking at the cost of bagged cement overseas together with freight, the importers are doing so much damage to the local manufacturers,” he indicated
Dr. Dawson-Ahmoah extended gratitude to the Ghana Link Network and Customs for the cooperation, and hoped the successors of Ghana Link Network will continue to fight to save the nation from losing massive revenue as a result of unfair trade practices in the cement industry.
He said GCMA is not against competition but unfair trade practices culminating in unfair competition.